Baek Hyunjin Proposes 'Consumption Promotion Activation Act' to Revive Gyeonggi Economy

Assemblywoman Baek Hyun-jin of the People Power Party (Photo by Yonhap News)

[Asia Economy Reporter Kum Boryeong] Bae Hyunjin, a member of the People Power Party, has proposed a bill to temporarily increase the income deduction rates for credit card usage, traditional markets, and small business usage to revive the economy stagnated by COVID-19.

On the 25th, Representative Bae announced that she had taken the lead in proposing the "Partial Amendment to the Restriction of Special Taxation Act."

The amendment includes extending the sunset date for income deductions on the use of credit cards, cash, and debit cards from the current December 31, 2022, to December 31, 2023, for one year.

It also includes an additional increase in the deduction rate for credit card usage from the current 15% to 20%. Representative Bae explained, "Compared to the 30% deduction rate for cash, debit, and prepaid cards, the credit card deduction rate is significantly lower, reflecting concerns about reverse discrimination against consumers with insufficient cash liquidity."

Besides this, the amendment applies a 50% income deduction rate for traditional market and small business usage, removes the total salary limit for income deductions on cultural and artistic expenditures, and adds a 10% increase in the deduction rate.

Representative Bae said, "Due to the prolonged COVID-19 pandemic, consumer sentiment has sharply frozen, causing many self-employed individuals to face difficulties. I believed that a bill that can temporarily stimulate consumer spending is absolutely necessary to recover the economy affected by COVID-19."

This content was produced with the assistance of AI translation services.